J.P. Morgan Out With Initial Thoughts On Eaton's Earnings (ETN)

J.P. Morgan Chase & Co. is out with a research report on Eaton ETN after the company reported earnings. It has an Overweight rating on shares. In a note to clients, J.P. Morgan writes, "ETN (OW) posted an upside Q1 report and updated its FY'11 earnings guidance. ETN reported Q1'11 operating EPS (before acquisition integration charges) of $0.84 vs. consensus of $0.80, JPMe of $0.81, and guidance of $0.78 to $0.82 (mp $0.80); however, lower pension costs added $0.03 vs. our forecast. More importantly, Eaton updated its 2011 outlook for continuing EPS of $3.70-$4.00 (mp $3.85) vs. consensus of $3.79 and JPMe of $3.75 and prior $3.55-$3.85 (mp $3.70), or +$0.15. Additionally, management provided guidance for Q2'11 continuing EPS of $0.90 -$0.96 (mp $0.93) vs. consensus of $0.93." Shares of ETN are up 17 cents to $52.80, a gain of 0.3%.